Why new Compulsory Purchase Order powers are making it easier for the government to take your land

The legal power of Compulsory Purchase Orders (CPOs), which allows authorities to acquire private land for public projects, has always been a concern for property owners.

However, recent government planning reforms are making the threat of Compulsory Purchase Orders more immediate and widespread.

New legislation aims to significantly speed up and simplify the CPO process, meaning homeowners and landowners could face the prospect of their property being taken for development more easily than ever before.

Understanding these evolving Compulsory Purchase Order rules is now paramount for protecting your rights and land.

Who can be affected by a Compulsory Purchase Order?

CPOs can affect anyone with an interest in land, including:

• Freehold and leasehold property owners
• Business and residential occupiers
• Individuals with rights over land, such as a right of way or right to light

When a Compulsory Purchase Order is proposed, it is initially published in draft form. This document outlines all the parties potentially affected.

If an individual or organisation can negotiate a settlement with the acquiring authority, they may be excluded from the final version of the CPO. If not, the authority can take possession of the land and compensation will be assessed afterwards.

Can you appeal a Compulsory Purchase Order?

While you cannot directly appeal a CPO, there are still opportunities to challenge or object to one.

If you hold an interest in the land or your legal rights would be affected, you can submit a formal objection once notified. The acquiring authority must then:

• Try to reach a settlement
• Modify the order
• Or, in unresolved cases, proceed to a public inquiry

Beyond that, the only legal route to challenge a CPO is through judicial review in the High Court, which is typically based on legal or procedural errors.

What the recent government changes mean

The Government’s new Planning and Infrastructure Bill (PAIB) introduces reforms to make the CPO process faster and more cost-effective, particularly for large-scale development.

According to Sara Hanrahan, a partner at law firm Blake Morgan, the bill aims to streamline land assembly and encourage more widespread use of compulsory purchase powers to unlock land for housing and infrastructure. Key reforms include:

• Allowing statutory notices to be delivered electronically
• Simplifying the process of public notification
• Allowing greater delegation of authority
• Enabling faster possession of land

Importantly, the PAIB also introduces changes to compensation rules, including restrictions on so-called “hope value”, which can significantly impact how much compensation landowners receive.

While the government are pushing to reduce the amount of challenges they receive to CPOs in their analysis on reforms to the compensation framework, law firm Hogan Lovells warned that: “The proposals are unlikely to significantly reduce the number of references made to the Upper Tribunal (High Court). … With a cap in place, a landowner is likely to push even harder for a higher value.”

Sara Hanrahan

Sara is a highly experienced solicitor and recognised expert in planning law and compulsory purchase orders, with a career spanning over two decades across some of the UK’s leading law firms.

How much payment can you receive?

Compensation for compulsory purchase orders is determined by several factors and can be complex.

A significant recent development is the removal of “hope value” - the premium based on the land's potential for future development.

Under the Levelling-Up and Regeneration Act 2023, and now extended under the new Planning and Infrastructure Bill, local authorities can apply to exclude hope value from compensation in certain cases, particularly when the land will be used for affordable or social housing.

This means some landowners may receive significantly less than market value for land with potential for redevelopment, prompting concerns across the property sector.

Compulsory Purchase Orders and Land Value Capture

In a move to support affordable housing delivery, the Government is increasingly exploring land value capture; the principle that public authorities should be able to buy land at existing use value rather than future development value.

The Planning and Infrastructure Bill would give local planning authorities powers to acquire land via CPO at reduced prices by eliminating speculative uplift from potential planning permissions.

While this could unlock more sites, it has raised concerns among landowners who may feel pressured to sell early to avoid reduced compensation later.

CPO reforms aim to simplify the process and promote development in the public interest, but they also raise important questions around fairness and compensation for landowners.

If you believe your property could be affected by a Compulsory Purchase Order, it's crucial to seek legal advice early, explore your options for objection or negotiation, and understand how recent legislative changes may impact your rights and potential compensation.